Here are some important and legally relevant tips for the purchase/sale of a property in Spain:
1. Choose a professional real estate agent, who will help you find the right property and advise you on all legal procedures.
2. IBI (real estate tax). Once you have found the property, confirm:
Whether or not IBI (an annual tax) has been paid. This tax can be paid at the Town Hall.
If the property is a new build, request a copy of the declaration of new construction and a copy of the declaration of urban property from the vendor. This shall constitute evidence that the property is registered for the payment of IBI.
3. Confirm property registration:
At the Land Registry, which is open to the public, request a non-certified record of the property. At the Registry, you will be able to confirm whether or not the property deed contains charges or encumbrances (e.g. a mortgage). Do not buy a property before you have received an up-to-date non-certified record from the Land Registry.
It would be advisable to hire a local solicitor. We can recommend experienced solicitors.
Approximately a month after “reserving” the property with a down payment of 10% of the purchase price, you must be ready to sign the deed of purchase.
Make sure that the vendor has confirmed that they are selling the property free of charges, encumbrances and tenants. Both parties or their respective authorised representatives must sign the contract in the presence of a Spanish notary, who will confirm that the contract is official.
6. Residents’ association
Obtain the latest bill for the payment of community charges or monthly or annual maintenance, and request a copy of the minutes of the most recent meetings of the residents’ association and of its regulations from the President or Administrator.
7. Costs and taxes
In accordance with Spanish law, the purchaser is liable for:
- Transfer tax (VAT + stamp duty when buying from a developer)
- Registration fees
- The vendor is liable for the municipal tax payable on capital gains from the sale